CANYON LAKE: Tax ballot measure vote hits snags

CITY COUNCIL DILEMMA

• WHAT: Canyon Lake council on Wednesday postpones putting a utility user tax measure raising revenue for the city on the Nov. ballot

• WHY: Lack of four votes needed to set the election

• HOW: Only four of five members attended, and Councilman Jordan Ehrenkranz voiced opposition to holding the election

• NEXT: Council expected to take up the issue again before Aug. 8 deadline, possibly at its Aug. 6 regular meeting

• PROPOSED MEASURE: Asks voters if they would support a 3.95 percent tax on their utility bills for six years. Would raise an estimated $787,000 for the city, offsetting an annual $775,000 deficit threatening to undermine the city's future fiscal viability.

Canyon Lake’s ability to put a revenue-raising tax measure on the November ballot is in doubt after a city councilman balked at the prospect Wednesday.

With four of its five members present at the special meeting, the council was poised to vote on whether to hold an election to ask voters to pass a utility tax that would raise nearly $800,000 annually over its six-year lifetime.

That would offset the city’s approximately $775,000 annual deficit, most of it resulting from escalating costs of fire protection and emergency medical responses.

Councilman Jordan Ehrenkranz, however, said he would not support putting the measure on the ballot, which would have left the council one vote short of the four votes required to set an election, according to City Attorney Elizabeth Martyn.

At Martyn’s recommendation, the council members agreed to postpone action, which must be taken by Aug. 8 to get it on the ballot.

In explaining his opposition, Ehrenkranz said the proposed measure is in essence a third attempt by the city to levy a tax to save its lone fire station, after two previous votes over the last three years failed to get the two-thirds approval rate needed to pass a special tax.

The proposed utility user tax measure now contemplated by the city would need only a vote of more than 50 percent to pass because it is framed as a general tax raising money for the city’s daily operations, including police and fire services.

“What we’re doing now amounts to fooling the public by saying is not about saving Station 60,” Ehrenkranz said.

Ehrenkranz’s position raises the question of whether Councilman Tim Brown, who was absent because of illness, will be available to attend the future meeting and what his position will be. He is often at odds with the majority of council members and he opposed last November’s measure asking voters to raise property taxes to keep the station open.

Because of its ongoing deficit, the city has threatened over the last few years to in essence shut down the station by halting funding for it. That would force Canyon Lake to rely on emergency responses from outlying stations in Lake Elsinore and Menifee.

The city, however, contracts with the Riverside County Fire Department for firefighters and paramedics, and county officials say state law prohibits terminating the contract without a public vote. The contract expires June 30, 2015.

Ehrenkranz contends the city must demand restructuring of the contract so it doesn’t have to draw so heavily from its operating budget in order to augment tax revenue specifically earmarked for fire and paramedic service.

“I think we have to draw a line in the sand and we have to draw it now. Otherwise, we’re going to have to start talking about our exit strategy,” he said.

Before Ehrenkranz spoke, the other council members had spoken of the tax measure as an attempt to save Canyon Lake from going broke and dissolving as a city, since the deficit continues to drain its dwindling reserve, now at about $2.3 million.

Resident Nancy Carroll, who campaigned for the last tax measure, pleaded with the council to set the election on the new proposal, which she believes could pass with enough public education.

“People need to understand that being part of the community is more than just floating on the lake or walking down the street,” she said.

Following the meeting, Councilwoman Mary Craton admitted she was somewhat surprised by Ehrenkranz’s stance.

“I love this city, and I’d hate to see it go away,” she said.

Ehrenkranz said he has no intention of undermining the city.

“I love this city and I want it to remain a city,” he said. “I think there are certain ways to go about it, and I hope I’m right.”

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